sanctuary group value report 2016/2017 · 2017. 8. 18. · sanctuary’s investment in new...

VALUE REPORT 2016/20171

Value Report

20162017

https://www.sanctuary-group.co.uk/


Icon keyLinks to website

CONTENTS

GROUP CHIEF EXECUTIVE’S STATEMENT

WHAT WE DO

OUR MISSION AND VALUES

VALUE FOR MONEY

SANCTUARY’S BUSINESS MODEL

SANCTUARY’S BUSINESS PLAN AND VALUE FOR MONEY

OPERATIONAL ACHIEVEMENTS AND REVIEWS

AFFORDABLE HOUSING AND SUPPORTED LIVING

DEVELOPMENT

CARE

STUDENT AND MARKET RENTED

CORPORATE SERVICES

INVESTING IN COMMUNITIES

SANCTUARY HOMES: MORE

RETURN ON ASSETS: STRATEGY, OBJECTIVES AND ACHIEVEMENTS

PERFORMANCE AND BENCHMARKING

2016/2017 OBJECTIVES AND RESULTS

OUR OBJECTIVES FOR 2017/2018

3

4

5

6

8

11

13

15

17

19

21

23

32

36

39

42

51

2 VALUE REPORT 2016/2017


3


Welcome to our Value Report, which sets out how Sanctuary Group provides value to its customers, stakeholders and staff.

For nearly 50 years Sanctuary has remained committed to delivering its charitable objectives of providing housing and care services to those who are in need. Those objectives, along with our Group values of ambition, diversity, integrity, quality and sustainability, continue to guide our work today.

At a time when both housing and social care are dominating the news and Government policy cycle, Sanctuary’s commitment to build over 30,000 homes by 2027 and grow its care business demonstrates that it is ready and able to make a significant contribution. As part of our commitment to grow, we have recently acquired a portfolio of 35 care homes and a supported living scheme in the north of England and Scotland. The acquisition enables us to further fulfil our charitable objectives.

This report sets out how Sanctuary has focused on delivering consistently high quality services, continually investing in our people while increasing operational efficiency and value for money, and reducing management costs per unit.

One enabler of this greater efficiency has been Sanctuary’s investment in new technology. During 2016/2017 we successfully concluded the implementation of our sector-leading SAP computer system across all areas of operation, leading to improved and streamlined processes. Sanctuary will continue to realise the benefits from this technology over the coming years.

Welfare reform continues to impact many residents and Sanctuary recognises that providing additional support will enable them to sustain their tenancies. Our Sanctuary Online digital inclusion programme and employability initiatives contribute to this agenda.

Looking back over the past year, Sanctuary’s focus on charitable objectives has been more evident than ever before, to the benefit of residents and the further sustainability of the Group, thanks in no small part to our people living our values.

“Sanctuary has focused on delivering consistently high quality services, continually

investing in our people while increasing operational efficiency

and value for money.”

David Bennett Group Chief Executive



WHAT WE DO

Sanctuary Group is structured into a number of operations, all supported by our Group shared service centre. We have structured our business in this way to ensure the operating efficiency of each operation is clearly visible and transparent to our customers, stakeholders and funders.

Affordable housing and supported livingWe believe everyone should be able to live in a decent home, where they feel safe and secure. We provide a range of high quality affordable homes and support services across England and Scotland, reflecting the needs and aspirations of our customers and delivering services at a competitive cost. We also provide in-house maintenance and reinvestment services across our portfolio of properties.

We provide a range of housing where specialist, tailored support is offered alongside accommodation.This includes support for people with learning and physical disabilities, young people, the homeless and people with mental health problems. We also provide care in people’s homes in our extra care schemes.

DevelopmentWe take our role in meeting the UK’s housing shortage seriously and we are building more homes than ever before. Our ambitious development programme will include homes built by our own in-house construction arm. Ultimately, we want to build the majority of our new homes, creating training and employment opportunities for our customers along the way.

Care

and a mental health hospital in our Sanctuary Care portfolio, we are delighted to expand our services and welcome over 1,800 staff to the Group.

We are a leading provider of care for older people, with welcoming homes operated by highly trained staff. We are committed to keeping kindness at the heart of our care. We help our residents live dignified and fulfilling lives in places where they can explore their passions, learn new things and build lasting friendships. Our well-equipped care homes provide a range of long and short-term care and support, including residential, nursing, intermediate, respite, end-of-life, and specialist dementia care.

Since the year end, through the acquisition of Embrace Care Limited, we have brought into the Group an additional 35 care homes to add to our existing portfolio. The acquisition enables us to further fulfil our charitable objectives of providing housing and care services to those who need it. It will expand our care offering to over 100 homes and brings a portfolio of homes in Scotland. With more than 20 years’ experience of managing care homes, and 68 existing homes

Student and market rentedWe provide a range of commercial services. These include working with universities and NHS trusts to provide accommodation and facilities management services for students and key workers, managing a portfolio of direct-let student accommodation, as well as overseeing a diverse portfolio of commercial and market rent properties.

5OUR MISSION AND VALUES

OUR MISSION AND VALUES

Our mission is to remain a market leader in the provision of high quality housing, nursing and residential care, and community services for people in need. Through careful stewardship of resources, we will maximise the benefits of our ethically-based operations providing good quality and value to our customers and stakeholders.

At the core of our business are Sanctuary’s values: ambition, diversity, integrity, quality and sustainability. These set the way we conduct ourselves and how we do business.

OUR values

our mission

To remain a market leader in the provision of high quality housing, nursing and residential care, and

community services.

AMBITIONWe invest in and care for our people and communities.We seek opportunities to grow our business.

diversityWe respect and value the diversity of our people.

We are committed to fair access to services for all of our customers.

integrityWe act with honesty and integrity in all that we do. We’ll do the right thing, even if it’s not the easy thing.

qualityWe focus on delivering positive outcomesfor our customers.We have high standards; providing efficient and effective services.

sustainabilityWe continue to build a sustainable business model for our people and our customers.We deliver services ourselves wherever possible.


ECONOMYAchieving the best value

from our inputs, that is, where items were purchased did we

get them for the best possible value?

EFFICIENCYMaximising the outputs for a given level of inputs, that is, how good are we at creating

the output?

EFFECTIVENESSEnsuring the outputs deliver the desired

outcome, that is, was what we delivered at the correct standard and did

it achieve the desired outcome? We measure

effectiveness through the service, economic, and

social and environmental benefits created.

+

Our Group Board has responsibility for setting value for money objectives and for

monitoring progress. Objectives are set in the business plan and are reflected in

operational plans and budgets. Key performance indicators and management accounts

reports are monitored by our Executive Committee and Group Board against operational

plans and budgets. A balanced scorecard and performance reports are presented to our

Group Board.

At Sanctuary, we work to the principles of the three Es – Economy, Efficiency and

Effectiveness – while focusing on delivering service, economic, and social and

environmental benefits. We believe that to achieve and provide value for money we

must balance these in achieving our objectives.

VALUE FOR MONEY

7

SERVICETo deliver high quality services at low cost.

SOCIAL AND ENVIRONMENTALTo improve the quality of life for the people living in our communities

and play an active role as a responsible corporate citizen.

Resident satisfaction with maintenance services 92% Cost of responsive repair £103

Resident satisfaction that rent is value for money 83%

ECONOMICTo ensure public money and assets are protected for the public

good and that the Group continues to contribute meaningfully to the economy and alleviation of poverty.

EBITDA £269.5m

Operating margin 28.7%

Credit rating A+/A1

Our Affordable Homes Programme supported 1,914 jobs in the year*

13,219 people took part in healthy activities.

7,638 people gained an increased sense of belonging to their neighbourhood.

4,144 people developed a new skill.

317 people gained increased confidence to manage their money.

108 green spaces were improved.

VALUE FOR MONEY

*Our interpretation of the National Housing Federation Local Economic Calculator

SANCTUARY’S BUSINESS MODEL


Building new homes

£117m

£18m

£4m

£139m

Investing in existing homes

£69m

£47m

£23m

£139m

Providing services and community investment

£310.5m

£1.5m

£312m

HOW IT IS USED TO MEET OUR OBJECTIVES

ECONOMY

Raising funds

Repaying debt

£50m

Raising capital

£250m

-£128m -£128m

-£12

8m

-£128m

R

aisi

ng

capi

tal

R

epayin

g deb

t

=£590m

Businessactivities

Affordable housing

£389m

Care

£126m

Student and market rented £57m

Development

£24m

Supportedliving

£74m

£670m £670m

£670

m

£670m

Government funding

£48m £48m

£48m

£48m

G

ran

t rec

eiv

able

£48

m

Grant receiv

able

£48m

INCOMING RESOURCES

VALUE FOR MONEY =

9SANCTUARY’S BUSINESS MODEL

Building new homes

£117m New social homes

Shared ownership properties

New care homes

£18m

£139m

Investing in existing homes

£69m Capital repairs and maintenance

Routine maintenance

Planned maintenance

£47m

£139m

Providing services and community investment

£310.5m Provision of housing and care services Community investment £1.5m

£312m

HOW IT IS USED TO MEET OUR OBJECTIVES

EFFECTIVENESS

Service

83% resident satisfaction with services

85% of care homes fully CQC compliant

V1/G1 rating from HCA

Economic

£92m reinvested into our properties

456 housing units completed

£1.5m procurement savings in the year

Social and environmental

61,690 people benefited from our community projects

£1.5m invested in communities

7,014 residents supported through projects promoting access to employment

EFFICIENCY EFFECTIVENESSECONOMY

VALUE REPORT 2016/201710 VALUE REPORT 2016/201710

11

Within our 2017– 2021 Group Business Plan we have set ourselves three main targets. These targets are to:

• provide cost-effective services – we provide efficient services with reduced management costs while maintaining or improving customer satisfaction levels.

• build new homes – we are developing over 30,000 new homes by 2027. These will be a mixture of shared ownership, rent and properties for outright sale as well as care homes.

• achieve high quality standards – we will make sure operations across the Group’s diverse range of activities meet the high service expectations of customers and regulators.

By achieving value for money through economy, efficiency and effectiveness we work towards achieving our targets.



Surpluses generated by our core operations are used to fund ongoing development and reinvested into our properties to provide the best possible standards for our tenants and residents.

• Customer satisfaction up 2% in housing, care, students and maintenance

• 85% good or higher CQC rated homes in care (2016: 80%)

• Sanctuary rated as V1 and G1 by the HCA

• £1.5 million procurement savings

• £1.4 million saved from housing transformation programme

• New SAP platform implemented to support growth and efficiency

• Management cost per unit down from £621 to £580

• 6,337 homes on-site or in development (2016: 4,381)

• £8.9 billion of funding planned for development

• Joint venture arrangements entered to develop 600 new homes

Effectiveness: achieving high quality standards Efficiency:

providing cost-effective services

Economy: building new homes


78% OF RESPONSIVE REPAIRS WERE DELIVERED BY OUR MAINTENANCE OPERATION

13


Affordable housing and supported living

Last year was one of significant progress in our affordable housing division driven by the operational release of a new system under OneSanctuary. The new system holds customer details, from rent accounts to maintenance enquiries, enabling us to better serve our customers’ needs and improve their experience. We have worked hard to provide a seamless change minimising any disruption and allowing our customers, most namely tenants, to benefit from a platform for improved customer service. As a result our customer satisfaction has increased by 2%.

The system changes have placed us in a strong position to be ready for the market and economic changes impacting the affordable housing division. Universal Credit roll-out is impacting our tenants on an increasing scale; at the end of the year the number of our tenants affected had increased by 125 to 634, with thousands of our customers likely to be affected in the next 12 months. Having a market leading system in place enables us to support our customers on Universal Credit or those likely to be impacted by Universal Credit in the near future, in particular with advice on their own income management. This investment has prepared us for future challenges.

Last year our supported living business focused on rationalisation and standardisation in readiness for working on the new system. We rolled out a new standard operating model that unified pay rates and job specifications enabling us to be in a strong position to retain and grow the business where new opportunities exist. We also used the roll-out of OneSanctuary as an opportunity to review, rationalise and standardise processes to align to the Group where appropriate.

As always, our supported living business focused on the quality of care we provide, ensuring Care Quality Commission (CQC) compliance and ongoing service improvement. With this in mind, we put plans in place to continually develop our service to ensure regulatory requirements are met.

In our maintenance operation we focused on increasing internal delivery as we know that our internal service provides better customer satisfaction than our contracted service. Our internal delivery of responsive repairs was 78%, with the average cost per repair at £103, while the cost per repair from contractors was £173. This is on average a saving of £70 per repair, an increased saving of £6 per repair from last year.

We successfully rolled out internal delivery of gas repairs and servicing across our Scottish operation. In previous years all our gas repairs were delivered by external contractors. At the end of the year, 87% of our gas repairs and 88% of our gas servicing were being delivered internally with our cost per repair at £105. This internalisation of work has threefold benefits: we save money as a Group; we provide better services to our customers; and we strengthen our relationship with our customers through face-to-face contact.

Last year we also focused on increasing our service delivery to our commercial operations. We now provide a range of services from responsive repairs to gas services, including providing 58% of responsive repairs to our student operation.

Last year we conducted an extensive review of fleet costs comprising around 900 maintenance vehicles. We reviewed the triggers that identified the need to replace a vehicle. Instead of setting the replacement date on vehicle age we now consider mileage and vehicle condition. The impact of the review resulted in a change to our fleet policy, extending the life of the vehicle and resulting in savings of over £1 million per annum.

OPERATIONAL ACHIEVEMENTS AND REVIEWS - AFFORDABLE HOUSING AND SUPPORTED LIVING


£89.9M OF GRANT SECURED TO DELIVER 2,265 AFFORDABLE HOMES

15


Development

In January 2017 the Homes and Communities Agency (HCA) published details of the initial grant allocations for its 2016–2021 Shared Ownership and Affordable Homes Programme (SOAHP). Grant allocations were made to 150 providers. We secured the largest allocation in the sector demonstrating that the HCA considered our commitment to be of good value. Accordingly we were allocated £89.9 million to deliver 2,265 homes (an average grant rate of £39,728 per home).

In 2016/2017 our development team continued to deliver the 2015–2018 Affordable Homes Programme (AHP) within England, regeneration projects within Cumbernauld, Scotland, as well as new affordable homes within Scotland. In addition, the team has started the delivery process of the 2016–2021 SOAHP.

Last year we started on-site with 624 homes; we completed 318 homes (456 including consortium delivery) as a result of a smaller affordable rented programme commitment in prior years. It is expected that annual completions will grow year-on-year to an average of 3,000 homes a year. As a result of our Affordable Homes Programme we have supported 1,914 jobs in the year.

At the 2016/2017 year end we had 6,337 homes on-site, an increase of 1,956 from 2016. We have a number of existing assets where we are looking into the best way to develop these into further affordable housing. We have also entered into three joint ventures that will secure a further 600 homes in future completions.

Last year we set ourselves the task of selling 144 homes in England arising from the capital programmes, with proceeds of £20.6 million and a margin budget of £3.8 million. We surpassed this with 167 homes sold, sales proceeds reaching £24.1 million and a margin of £6.5 million, £2.7 million better than budget. All of the surpluses achieved on property sales are reinvested in the development of new homes.

In the year our in-house construction team started work on 12 sites as well as beginning construction of an office. Currently our construction team is on-site at 10% of all homes in development. This is expected to grow as our development programme increases. The construction team continues to provide training and employment opportunities on our construction sites and offers and provides the communities we work in with access to resources to support local projects - see pages 32 to 35 for more information.

OPERATIONAL ACHIEVEMENTS AND REVIEWS - DEVELOPMENT


85% OF OUR HOMES WERE RATED GOOD OR HIGHER BY THE CQC

17


CareOur objective last year was to improve the overall quality of care provided to our residents while ensuring a sustainable financial position. In addition we sought to expand our service to meet the growing needs of elderly care. We pay in excess of the National Minimum Wage and during last year began paying National Living Wage.

In order for our care service to remain at the highest standard while we remain financially robust, we have been focusing on increasing our average weekly income. We have increased the number of self-funding residents to contribute towards the increase in our staffing costs. The number of self-funding residents in our homes increased by 4% to 46% during the year.

We have also been working with local authorities to ensure the needs of elderly care funded from the public purse is sustained. We have reached fee agreements with relevant authorities enabling us to provide cost-effective services to the local authorities. At the same time we have been able to increase pay for all of our care staff and achieve our financial targets which are then reinvested into charitable activities.

To improve the quality of care, we have focused on two main initiatives; the recruitment and retention of quality staff, and reducing the administration and paperwork carried out by carers, resulting in staff spending more time with residents. We introduced a new recruitment strategy which included the creation of a centralised recruitment team to streamline the process and reduce the administration time of our care home managers, allowing them to concentrate on caring for customers. We have recorded a 43% increase in new starters.

We also utilised our enhanced programme of staff training and development in order to support recruitment and retention and to reduce the reliance on agency staff in the homes. Each of these objectives has been developed to increase the efficiency of the operation or improve the service offered to customers.

During the year we developed an electronic care planning model to reduce paperwork. Our vision is that, with patient consent, the model will allow us to share patient records with other care providers (for example hospitals and surgeries). This will allow us to build up individual care profiles, enabling continuity and specialised care. This initiative will, we believe, also allow staff more time with residents; our objective is to embed new working practices over the next 12 to 24 months.

Our actions to improve the quality of care have been rewarded in the results of our CQC inspections. At year end 85% of our homes were considered to be providing good quality care, up 5% from 2015/2016. This compares favourably to the national average of 74%.

We have also been expanding our offering to new areas, partly through building new homes and also through acquisition. Towards the end of 2016 we opened two new care homes in Chester and Kent totalling 124 bed spaces. The Group also acquired Embrace, a portfolio of 35 care homes and a supported living scheme, in June 2017. We plan to review the Embrace operating model to ensure consistent delivery of good quality care across all services which meets the needs of diverse service users.

OPERATIONAL ACHIEVEMENTS AND REVIEWS - CARE


£3.2M SPENT DELIVERING TWO MAJOR CAPITAL

WORKS PROJECTS

19


Student and market rented

Over the last 12 months, we have continued to transform our student accommodation buildings, our services and our operating systems as part of our ongoing commitment to being a market leader in the provision of high quality housing.

The UK higher education sector is recognised globally for the quality of its universities and is the second most popular destination for international students in the world. We have capitalised on that, focusing our marketing overseas and, as a result, in the last 12 months we have accommodated students from 129 countries.

Last year we made a significant investment in our direct let and university partnership properties which helped us to achieve over 98.5% occupancy across many of the key university cities where we operate.

We have also invested in our online platform and website functionality to deliver improved online search, booking and self-service functions for our customers. These enhancements have contributed to promote our visibility and brand as a commercial operator.

Our site-based team delivered welcome events and activities throughout last year, which have increased our student retention and customer satisfaction results by 2% from previous years.

We recognise that for many students, choice of accommodation and rent prices are hugely important. We therefore offer a variety of accommodation types focusing on value for money. Our offering provides good quality accommodation, with suitable facilities at affordable prices. As competition increases, students are expecting more for their money and to meet these challenges we are continuing to invest in our portfolio.

In the last 12 months we have refurbished 778 units of accommodation in our direct let and university partnership properties and delivered two major capital works projects with an expenditure of £3.2 million. We have replaced bathrooms and kitchens and, as a result, can offer students a better living experience.

Our service improvement programme has included enhancements to the provision of broadband, leisure facilities and social spaces at a number of locations.

Last year, within our key worker and market rented division we benefited from the implementation of new human resources, maintenance and tenancy management systems. These new systems are designed to reduce repetitive administrative tasks and drive shared service efficiencies while delivering improved financial visibility.

OPERATIONAL ACHIEVEMENTS AND REVIEWS - STUDENT AND MARKET RENTED


£1.5M SAVED BY UNDERGOING NEGOTIATIONS AND FULL TENDERING PROCESSES

21


Corporate services

Last year we focused on improving the service we offer to our operating divisions. Within the Group shared service centre (GSSC), the aims over the last 12 months were to review and continually improve robust and efficient processes to help provide improving support services for our customers: our operational businesses.

Last year we reviewed our service to ensure we are providing the best customer service. We launched a single number for our internal customers for all information systems, human resources, finance and purchasing queries, making getting in contact easier. We also increased the number of services available on our helpdesk portal. Not only has this reduced the volume of calls being taken within the GSSC, but it has also simplified the way staff can request services.

Over the last year we also focused on developing and supporting our people. We have been working on developing our own talent through a variety of methods. As a result we have received positive feedback from our internal customers. Our human resources department has worked with representatives across the Group to provide a new performance framework in relation to continual development.

Last year we launched our Staff Awards and Staff Ideas schemes across the Group to empower staff members and recognise exceptional performance. The feedback from our staff has been very positive and, as a result of the Staff Ideas platform, we have implemented a number of suggestions.

In the year we continued to build effective processes, including our end-to-end recruitment service provision. We now provide a full recruitment service to our operational staff, which means they spend less time managing recruitment administration and more time helping our customers. The new recruitment process also ensures consistent and compliant practices.

Our OneSanctuary programme has seen further successful roll-outs of functionality. All of the Group’s housing properties, tenancy and customers, repairs and maintenance services are now operating from one single Enterprise Resource Programme.

Last year we continued our ongoing work with suppliers to increase the Paid on Time rates, making use of data uploads and consolidated invoices, where possible. We also underwent negotiations and full tendering processes which saved a total of £1.5 million.

We have increased compliance around key areas including payroll, supplier payments and customer receipts. For example, our process improvements in payroll have resulted in enhanced accuracy that compares favourably to other large organisations.

OPERATIONAL ACHIEVEMENTS AND REVIEWS - CORPORATE SERVICES

23


Every year we invest in hundreds of initiatives which enhance the lives of our customers. We work in partnership with voluntary groups, resident groups and charities across England and Scotland, to support our residents to design and deliver the changes they want to see in their community.

This year we invested £1.5 million in 390 community investment initiatives, benefiting 61,690 people and 258 community groups. Our investment includes: grant funding; staff time to support and advise; donations of resources or materials; and the cost to manage the community investment programme. We aim to reach a diverse number of beneficiaries which include older people, homeless people, people with a mental health issue or disability, young people not in employment, education or training and children.

We have a rigorous approach in place to measure the difference our investments make. This helps us to gain a deeper understanding of the impact of the challenges faced by our customers such as unemployment, Universal Credit, ill health and isolation, and identify best practice.

Investment by geographical area %

Investment by theme %

National

East

London and

the South East

Midlands

North

North West

Scotland

South West

27.52%

6.63%

9.18%

12.66%

8.86%

19.59%

7.04%

8.52%

Employment, education, 32.5%

skills and training

Health and well-being 33.0%

Community safety and 20.9%

infrastructure

Environment 6.8%

Financial inclusion 6.8%


390£1.5m invested

61,690people benefiting

community investment initiatives supported390£1.5m

invested61,690people benefiting

community investment initiatives supported390£1.5m

invested61,690people benefiting

community investment initiatives supported


By supporting the aspirations of local people, we aim to reflect the diverse and unique nature of each neighbourhood. Over the next few pages we share the aims behind our five core community investment themes, what we have achieved this year and examples of more projects in action.

Community investment – our themes

We aim to help people to develop their skills and access training and support in order to enter into, and sustain, employment. Our investment here helps customers to access volunteering, build self confidence, gain skills or qualifications, and find work.

4,144 people developed a new skill

Shiregreen - Job fair

427 individuals increased their employability

695people gained work experience

66 individuals moved into work

Acorn Youth Café – Torquay

Employment, education, skills and training

We teamed up with community regeneration charity SOAR to organise a job fair at Firth Park Library in September. With higher than average unemployment rates, providing easy to access local opportunities, employment advice and training is essential. Over 500 people attended throughout the day, meeting Sheffield employers, Jobcentre Plus, Sheffield College and employment advisors to hear about live job vacancies, training and local apprenticeships. A workshop also gave one-to-one guidance for CVs with expert advice on what employers are looking for.

Employment, education,

skills and training

Open three evenings a week,

Acorn Youth Café helped 400

young people access information

and advice last year by offering a

safe environment to hang out with

friends and talk to youth workers.

Many of those accessing the café

lead chaotic lifestyles and some

are dealing with mental health

issues, substance abuse and self

harm. Many live in single parent

families while others live with

extended family, foster families

or in care homes. Several are not

in education, employment or

training and have little confidence

and low self-esteem. The youth

workers at the café offer the

young people the chance to

volunteer, access training and

develop numeracy, customer

service and food preparation

skills. Asked what they get out

of going to the café, the young

people said:

“It stops me getting into trouble in town.”

“I can speak to youth workers about my problems.”

“I can have something to eat.”

“I can gain experience to get a weekend job.”

25

Breakfast club – Glasgow

We have supported the local United Reformed Church and volunteers to set up and run a community breakfast in Priesthill and Househillwood, in partnership with the NHS and funding from Glasgow Community Planning Partnership. The idea is a simple one, to provide a safe and comfortable social setting for local people to come together to have “a bacon roll, a cuppa and a blether”, to meet new people and create connections. Around 40 people attend each week and we are now starting to link in with other groups and local doctors’ surgeries.

Here and Now - Chester

Health and well-being

Here and Now group is a lifeline for Blacon residents who are experiencing bereavement, illness or loneliness. The befriending group organises meals, crafts, nights out and events for over 60 people a week to enjoy themselves and each others’ company. This year, in addition to a £5,000 grant, the Enterprise Service at Avenue Services supported Here and Now to secure £60,000 from Brightlife to help expand its reach in Blacon. One 96 year old who attends the group has been helped to Skype his daughter in Australia and said that this has made him very happy.

We support people to live happy, healthy and fulfilled lives, with access to the care and support services they need. Our investment here helps customers to access activities which promote healthy lifestyles, create friendships and build links to support networks to help people live more independently.

13,219 people took part in healthy activities

2,328 individuals were supported by projects which aim to reduce isolation

313people reported feeling more in control of life

Health and well-being



Community safety and infrastructure

We aim to ensure that our communities are safe places to live and are equipped with the infrastructure they need to shape their aims and aspirations. Our investment here helps to promote opportunities for people to play a positive role in their community, to design community-led initiatives, and build the capacity of local groups and charities to provide them.

We are working with the Cheshire Police Service to support Operation Shield, which has seen a 26% reduction in crime in Chester in the last year. The Housing team and police visited 125 residents at home to give them a SelectaDNA and explain how to use the liquid to keep their property safe. Each bottle of SelectaDNA contains unique DNA coded microdots which can be applied to personal property including TVs, phones, lawnmowers, bikes and jewellery to trace items back to their owner if they are stolen. Street signs, billboards and posters are just a few of the ways used to publicise the use of SelectaDNA and help prevent burglaries and thefts. Operation Shield also includes marking copper piping and boilers in unoccupied houses, helping to identify any stolen materials in scrap yards.

Two parties were held to coincide with Halloween to reduce fear and increase a sense of community for residents in Grimsbury. The events, organised in partnership with Banbury Rotary and youth organisation OYAP, gave the community alternative ways to mark the annual fright night, in response to fear about trick-or-treaters and the potential for anti-social behaviour. A party for older people saw cupcake decorating, games, music and singing while children from local schools enjoyed crafts, storytelling, music, games and food.

The Great Grimsbury - Banbury

Operation Shield – Chester

7,638 people with increased sense of belonging to their neighbourhood

2,243 individuals participated in positive active citizenship

256people supported to access technology

Community safety and

infrastructure

27

Environment

We aim to make our neighbourhoods greener and cleaner places in which to live and assist our residents to live more sustainable lifestyles. This includes involving local people in improving spaces and encouraging greener lifestyle choices such as growing their own vegetables or recycling.

Young people in Rayleigh, Rochford, took a closer look at their environment in the ‘Through Our Eyes’ initiative. Through photography, the young people learnt to appreciate where they live and explore ideas around community and difference, helping to promote the idea of good citizenship and how actions can impact on others. The Through Our Eyes initiative culminated in an exhibition of their photography.

Shiregreen’s 231st Scout group created a welcoming environment for people living with dementia at a Sanctuary Care home, Park View. The young people planted a sensory garden with lemon, lavender and long grass as a way to stimulate the senses through scent and touch. They also made memory boxes, packed with vintage items and placed them around the home, to help provoke memories. Beaver Scouts also learnt and performed songs from the 1940s, 50s and 60s. A Million Hands is a nationwide community impact campaign which aims to mobilise half a million scouts to build real and lasting relationships in communities, to enable them to continue taking social action long into the future.

A Million Hands – Sheffield

Through Our Eyes – Rochford

491people actively engaged in improving spaces or places

108green spaces improved

Environment



We aim to ensure that everyone is able to access the basic financial services products that are needed to participate in a modern society. Amidst Universal Credit, we are actively promoting routes to local services that offer impartial financial advice, guidance and support to build people’s confidence to manage their money and make informed financial choices.

Financial inclusion

1,897 people supported through projects which promote financial inclusion

PennySmart – Blacon

317individuals with increased confidence to manage money

£88,071 debt reduced

Employment,

education, skills

and training

PennySmart is a local partner which offers money advice to residents in Blacon, Chester. This year PennySmart helped 50 people to reduce their collective debts by over £58,000. PennySmart offers advice on how to deal with debt and how to manage money differently, to avoid getting into financial difficulties. One man said: “I was

slowly drowning, couldn’t see any light at the end of the tunnel, couldn’t get my head above water, then I was introduced to PennySmart and from the very first meeting my life started to change for the better for which I would like to thank them and offer my sincere gratitude to each and every one that was involved in changing my life.”

Financial inclusion

Together with Tiber - Liverpool Five hundred residents from the Lodge Lane area in Liverpool enjoyed an event to celebrate Tiber Square, a new space which aims to bring the whole community together. We donated £1,000 towards the Together with Tiber event where residents enjoyed arts workshops, street performances and a talent showcase. Young volunteers from The Greenhouse Project helped to organise the event which celebrated diversity. Donnika Browne, Event Producer, said: “It is our aim that these events will give our community a real sense of ownership of Tiber Square as a place where different people can come together safely to meet, talk and enjoy a range of activities.”

To find out more, please visit our website:www.sanctuary-housing.co.uk/grand-ideas-fund

Grand Ideas FundThe Grand Ideas Fund offers up to £1,000 for projects which aim to make a difference to the lives of our residents and their communities.

https://www.sanctuary-housing.co.uk/about-the-grand-ideas-fund

29INVESTING IN COMMUNITIES

Employee volunteering and fundraising

We offer our employees the chance to volunteer their time for two days a year to support community groups, charities and our schemes. Giving time and skills to the local community is a great way for our employees to develop their skills and learn new ones, while being an active citizen. This year 95 employees donated 743 hours, worth £9,318, to volunteering projects. In addition, staff raised £3,534 and donated items for charitable causes through a range of fundraising events and challenges.

If you would like to find out more about our Employee Volunteering scheme or can offer a placement, please visit our website: www.sanctuary-group.co.uk/employee-volunteeringToys for tots collection for disadvantaged

children with Worcester Community Trust

Lending IT skills and donating laptops to

The Hill Homework Club

Sorting donations for Somebody Cares

Helping out at Summerfest family fun day

Donations for homeless people at Maggs Day Centre

https://www.sanctuary-group.co.uk/about-us/employee-volunteering


Andrew’s story

National initiatives - Sanctuary Online

Andrew Bailey lives in a Sanctuary Supported Living scheme. He is a keen cyclist and had never considered how the internet might be relevant to his passion for cycling. After going to a six week group digital skills course, Andrew learnt how to use apps on his smart phone to find safe cycling routes. He said: “I never really looked at the internet before, I didn’t really know how to use it. The lessons have been fantastic, I can try a different route every day!”

We have teamed up with digital skills provider We Are Digital to deliver free training to help our residents access technology. The training gives people the opportunity to discover how being online can make a difference in their daily lives. Through a choice of either group courses run in local community centres, or one-to-one tuition in their own home, help is tailored to people’s individual interests.

There are an estimated 12.6 million people offline in Britain today. Being offline can mean missing out on average financial savings of £440 a year, job opportunities, access to public services, and communication with friends and family. Over half of the offline population are aged over 65, 49% are disabled and 60% have no formal qualifications.

Tim’s story Tim Burchell wanted to improve his existing computer skills so registered for free in-home training. Tim says: “It has given me access to web design and blogging which I didn’t know about before. I wasn’t aware how easy it was to access these things, it was very enlightening.”

Since completing the training Tim is creating debate through his blog around the local environment for disabled people, such as the state of pavements and access to facilities.

200people have received training so far

45 people have developed a new skill

20people have increased employability

Sanctuary Online

33people have increased confidence to manage their own money

31INVESTING IN COMMUNITIES

Currently in its fourth year, Love Sport is our national programme with Sport England, which helps people to be more active. Activities are for anyone aged over 14 years, running in Banbury, Chester, Hackney, Sheffield and Torbay, through a network of local community groups. The activities are designed and led by each community. They include indoor rowing, ballroom dancing, tai chi, football, rounders and self-defence.

By working with trusted local delivery partners we are gaining a deeper understanding of the barriers people face when they choose to take up a more active lifestyle and finding ways to overcome them.

Love Sport

1,250 people have taken part

1/3 of all participants were previously inactive

Sarah’s story

stats

Sarah, 15, has been taking part in Love Sport through sessions with Activate Banbury. She struggled at first with listening and following the rules which led to some challenges. However, it was obvious Sarah had the ability to achieve, enjoy and flourish so the Activators made sure they adapted to help with that. Sheena, who helps run the sessions, has noticed a positive difference. “Taking part in the Activator sessions has

clearly built Sarah’s confidence up not only in her own physical ability, but in her ability to work as a team and with peers. It has enabled her to take a lead in certain situations and embrace a young leader type role. The knock-on benefits have been great and I have seen a big difference in the girls-only sessions she attends and she was also fantastic as a volunteer at a recent event.”




Sanctuary Homes is a developer of neighbourhoods as well as homes. We prioritise getting to know local people in order to understand their aspirations and raise ambitions. Together with our partners we aim to seize the moments of opportunity that new developments bring.

We only work with partners who share these values and who will commit to helping us provide jobs and initiatives for local people. 2016/2017 saw the creation of new community spaces; new jobs; training and apprenticeships; and neighbourhood improvements for the wider community to enjoy.

MORE community spacesSeptember 2016 saw the opening of the Gascoyne Community Centre as part of a £4.2 million transformation project which included new houses and apartments at neighbouring Crisp Court. Meg Hillier MP opened the new development and enjoyed an exhibition of local history which was funded through the MORE programme.

Meg commented: “Some residents have lived on

the Gascoyne estate since it was built over 40

years ago. This iconic new community centre will

act as a hub for new and existing residents, young

and old. Involving residents in the redevelopment

at every step has helped to build a strong sense

of community.”

33SANCTUARY HOMES: MORE

MORE employmentForty apprenticeships have been created in Anderston, Glasgow, as a result of a £60 million transformation of the area. Sanctuary and construction partner CCG (Scotland) Ltd are providing jobs and training for local people such as Jack Gorman, 20, and Lewis Cuthbert, 18, who are training to become qualified joiners.

MORE apprenticeshipsSanctuary Scotland, in partnership with Seafar, recruited four local teenagers to help with regeneration works in Cumbernauld. Joiners Steven McAuley and Lewis Carey, both 16, of Cumbernauld,

plumber Callum Waugh, 17, of Cumbernauld, and joiner Derryn McCormack, 18, of Airdrie, will help build new homes for future generations while developing new and rewarding careers for themselves.



MORE education Sanctuary and partner Cruden Building and Renewals worked together to provide 121 affordable Sanctuary Homes flats in Cumbernauld. The town’s Redburn School had an aspiration to provide an outdoor classroom for the children to learn and enjoy the fresh air and Sanctuary was keen to help. The school’s pupils have severe and complex support needs and special attention is

given to developing communication, independence and social skills. Head teacher Niki Lavery said: “The impact has been phenomenal. The children have developed confidence in familiar and unfamiliar situations because the learning helps them access playgrounds and activities in their local community. I cannot thank everyone enough for what you have done to help us.”

MORE green spacesShiregreen was visited by Gill Furniss MP who hosted the opening of Sycamore Heights, a development of 46 one and two-bedroom apartments. The development boasts generous garden spaces with raised beds for planting by residents, tree-lined pathways and seating areas. This is in keeping with the original garden village design of Shiregreen. Sanctuary’s MORE funding also helped local people improve the local neighbourhood centre which now boasts external planting of attractive shrubs, flowers, fruit and vegetables. These will be maintained for the benefit of all residents by volunteers from the local gardening group. Gill said: “Sycamore Heights has done so much for the local area, not only providing much-needed accommodation for older people but also offering a number of employment opportunities, both during its construction and now that it’s open.”

35SANCTUARY HOMES: MORE

Our significant development programme which will see the delivery of over 30,000 new homes by 2027 will give Sanctuary a massive opportunity to take its neighbourhood building commitment to an even greater level. Creating jobs and providing diverse opportunities that benefit all the people who live in neighbourhoods in which we work is at the heart of the Sanctuary Homes’ philosophy.

MORE smilesSanctuary Grove in Worcester is a beautiful £22 million care and supported housing development which includes a 60-bed care home, 24 retirement living apartments and bungalows, 60 independent living apartments and 14 apartments for adults with learning disabilities. As well as the 100 jobs this development has sustained in 2016/2017, a local initiative at the Fort Royal Community School was supported to deliver its own transformation. Sanctuary helped pupils learn about growing and maintaining outdoor spaces including a beautiful sunflower garden. Margaret Jones, the school’s grant administrator, said: “The sunflower garden has given everyone a

real lift. All the children have benefited enormously. You walk past and you can’t help but smile!”



As a provider of more than 100,000 homes to our tenants and residents, our asset strategy is a key focus to us and ensures that we provide high quality homes for our tenants to enjoy.

We have strong governance arrangements in place regarding our assets. The Group Board sets the strategy in conjunction with the Capital Committee, while our assets function enforces and delivers it, including the proposal of investment and disposal decisions. In addition, our subsidiaries and their boards retain asset ownership responsibilities.

Maximising return on assets

2016/2017 delivery (see next page)

Objectives

Safe and decent properties

Optimal utilisation of

assets

Improve SAP ratings

Regulatory compliance

Remedy under-performing

assets

Strong asset base that

underpins Group Business Plan

Analysis

Property appraisals and

portfolio reviews

Stock data: investment

requirements, SAP ratings, fit

for purpose

Operational data: demand, maintenance

costs

Financial and analytical tools: discounted cash flow, return on

capital, valuation

Social value/strategic

importance

Potential/opportunity: alternative

usage

Monitor

Vacant stock Portfolio performance

Maintenance spend

Demand analysis

Commissioners’ activity

Relet dataCompliance

levels

Local property market

Stock condition


37

Our revised option appraisal process, implemented last year, continues to provide alternative uses for properties which are vacant or no longer fit-for-purpose, while the recent changes in regulation may allow greater flexibility in the options available for our assets in the future. This process has been further improved with the introduction of the Asset Life Cycle Maintenance module within our OneSanctuary system, which provides greater visibility over the current status of our assets and allows tracking of any works required.

The below table summarises the significant asset appraisal and investment activities in the year.

Future plans

With the recent acquisition of over 30 care homes in England and Scotland, an investment programme has been devised in order to ensure that these homes meet the standards of the Group.

Reinvestment will continue in our assets, with a budget of over £70 million for the next financial year.

The changes to regulation allow us to use our assets in other ways, which potentially produce a higher return than their current usage. Where appropriate and practical, options such as market rent will be considered on our assets, but not in such a way to be detrimental to our objectives as a provider of social housing. The additional surpluses that are generated from these properties will go, as our surplus goes currently, into the development, reinvestment and maintenance of social housing.

Through our option appraisal process, we are constantly reviewing the performance of our assets, with a particular recent focus on the care and student portfolios.

The results of the recent review have recommended capital disposals of selected schemes. Market conditions, together with asset performance, will be continually monitored to ensure we are achieving value for money from our asset base.


Scope

Outcome

Affordable housing Supported living Care Commercial

Vacant and long-term unavailable stock: 919 units

3,915 units across England, with new services being tendered

Over 3,500 bed spaces across 70 care homes

35 schemes with over 11,000 bed spaces

Reinvestment and remodelling totalling £35.5m completed in

the year.

Reduced levels of unavailable stock by 24%.

Investment in new flagship scheme in Liverpool finalised.

Wider asset strategy in place for investment into supported units.

Reinvestment of £6 million in the year, with investment programmes planned for all

homes.

Reinvestment of £4.8 million in the year, with investment programmes planned for all

accommodation.


We have continued to develop our measurement of capital employed across the Group. The indicators allow the Group to understand both the operational performance and the asset management decisions made.

The Return on Capital Employed (ROCE) for the current and prior year is outlined below:

Our ROCE has increased following improvements in operational efficiency due to improved occupancy, higher fee rates for care homes, and maintenance efficiencies, all of which follow a planned reinvestment programme. The reduction in student and market rented ROCE is due to occupancy issues with our student accommodation in Stratford-upon-Avon.

Our staff

Our staff are a huge asset to the Group. We employ over 12,000 people and offer a wide range of learning and development interventions to support our staff to be the best they can be, while providing even better services to our customers. Over 290 staff completed qualifications through our in-house team, while we have supported 240 apprentices directly and an additional 47 through our third party providers throughout the year. Almost 105,000 e-Learning modules were completed and 63,000 staff attended training sessions.

During the past year, five business areas re-achieved Investors in People (IiP) accreditations and Sanctuary Housing took part in our first Generation 6 standard for IiP and successfully received a silver award.

External quality assurance reviews were conducted during the year by City and Guilds and the Institute of Leadership and Management and we continue to remain a low risk, best practice centre for the qualifications we deliver.

Care achieved Endorsed Provider status from Skills for Care, which demonstrates good quality learning and development recognised within the social care sector.


Measuring return on capital employed

Return on assets EBITDA*2017

£m

Capital employed2017

£m

ROCE2017

%

ROCE2016

%

Affordable housing 218.4 2,709.0 8.1 8.0

Supported living 2.5 98.2 2.5 1.1

Care 18.7 183.0 11.6 10.7

Student and market rented 28.2 232.4 12.1 13.0

*Earnings before interest, tax, depreciation and amortisation

39

Benchmarking is an ongoing, integral element in our approach to performance improvement. We use a number of methods to stay informed about external best practice, examining how others achieve excellent performance. By reviewing and applying this learning, we are continually challenging and improving our performance.

The following key performance indicators have been chosen as we feel they measure value for money through our efficiency, economy and effectiveness.

Business Actual Benchmark Prior year

Care - existing business 17.6% 10.3% 17.0%

Student and market rented 49.9% N/A 49.1%

Supported living 3.4% 25.8% 1.4%

Housing 56.1% 49.7% 53.6%

Development 27.4% N/A 30.1%

Financial efficiency (EBITDA)



Our operating divisions generally compare favourably in relation to the benchmarks which include six of the largest housing associations in the sector and the largest private providers of care. Earnings before interest, tax, depreciation and amortisation (EBITDA) margins are an indicator of efficiency and as such we conclude that our services compare well to other similar businesses and have generally increased year-on-year. That said, we will continue to review our operations for further improvements to margins while maintaining or improving customer service.

With regards to our supported living business, our EBITDA margin is lower than the benchmarks. We have completed a review of contract viability, particularly in our home care business, with the aim to improve the returns made in providing this valuable service. Our target next year will be to improve our EBITDA margin while continuing to provide tailored care to our customers.


Care 95.0% 90.0% 96.0%

Student 98.5% 97.0% 96.8%

Housing 98.0% 97.8% 97.9%

Occupancy levels

Both our student and housing businesses saw an increase in occupancy levels during the year. Our integrated OneSanctuary system and improved online student platform created a more efficient lettings process for our staff.

Our care business saw a marginal fall in occupancy in the year. This was due to our focus on increasing the level of self-funding customers. In order for our care service to remain at the highest standard while we continue to be financially robust, we have successfully increased our average weekly income, which has slightly reduced occupancy levels. This strategy has allowed us to improve our return on investment while absorbing increases in staffing costs associated with the National Living Wage.



Care 98.0% 95.0% 95.0%

Student 59.0% N/A 57.0%

Maintenance 92.0% 75.0% 90.0%

Housing - England 83.0% 80.0% 81.0%

Customer satisfaction

In 2015/2016 we identified a fall in our customer satisfaction in a number of our divisions. We set ourselves the goal of improving satisfaction in the 2016/2017 year.

We focused on our customer call centres and our internal maintenance service. By expanding the coverage of our internal maintenance team, we were able to offer our customers a better service at a lower cost. As a result satisfaction of our maintenance service increased by 2% in the year, which is well above the national average.

41

Group2017

Group2016

Peer groupaverage

2016

Annual procurement savings £m 1.5 1.8 2.5

Void loss % 1.4 1.3 1.42

Average cost per responsive repair £ 103 104 NA*

Average cost per repair unit £ 334 324 811

Management costs per unit of accommodation £ 580 621 712

Average cost of borrowing % 4.96 4.93 5.20

Chief Executive pay per unit £ 3.41 3.41 4.00

Financial performance

Asset managementGroup

2017Group

2016Peer group

2016

Number of new homes completed during the year 456 1,608 684

Homes failing Decent Homes Standard (England only) % 0.0 0.0 0.21

Reinvestment spend per unit £ 691 694 899

Our customers also experienced an improved service provided by our two national call centres. In the year both call centres benefited from migrating to our integrated SAP platform. The new system gives our staff a full picture of a customer’s records. Being better informed has enabled our staff to provide a more comprehensive service. This improved service is reflected in housing’s customer satisfaction increasing by 2%.

In our student business additional questions regarding value for money, and condition and quality of accommodation, were added to our customer satisfaction surveys. This changed the overall scoring of the survey from the previous year. Although at face value customer satisfaction looks to have dropped, like for like comparison shows an overall increase of 2%. On our direct let portfolio the overall satisfaction was 4% better than the industry benchmark. From the data collated we also saw a 4.5% increase in overall satisfaction in sites where investment took place.

In our care business customer satisfaction has continued to increase year-on-year. We are hopeful that through our endeavours to improve our quality of care and reduce agency staff we can continue this upward trend.

*definition not used by peer group

Last year we successfully reduced the cost of providing our services. We reduced our cost of management per unit and our cost of maintenance per property (in real terms) year-on-year. Our management cost per unit reduced to £599, an average of £113 less than our peers. We also continued to invest in our properties, spending an average of nearly £700 per unit.




Two of our Scottish housing subsidiaries were incorporated into Sanctuary Scotland last year, forming an integrated Scottish operation. In addition we consolidated two English housing subsidiaries. This will allow us to realise operational and commercial benefits, develop new governance arrangements and further integrate Group operations.

We will consolidate operations both in England and Scotland to deliver a consistent high quality service for our affordable housing tenants, and achieve economies of scale to allow greater investment in properties and services for our residents.

Last year we supported 9,000 customers through our Income Advisor service. The Income Advisor service offers help and support with financial inclusion, household budgeting and advice about welfare reform. Customers claiming Universal Credit or affected by the Benefit Cap were offered a comprehensive support package through our Customer Support Framework which includes help with digital inclusion and accessing pathways to education, training and employment.

We will instigate a national project to address the digital and financial planning needs of our residents experiencing the change to Universal Credit, and other groups experiencing financial and digital exclusion.

OneSanctuary has enabled a revised methodology of working with a thorough review of working practices. This has resulted in taking the Housing Transformation Programme further on its journey with a review of the way we interact with our customers. A savings programme to realise £1.4 million against the current housing structure has been established to rationalise the frontline housing staff to be less hierarchical and more customer facing.

We will integrate the Housing Transformation Programme with the next release of the OneSanctuary system to further improve our ability to provide an enhanced and efficient customer service.

Affordable housing

Objective Results

We spent over £550,000 on key initiatives last year. Programmes such as Sanctuary Online reinvest contributions from rent towards enhancing the communities and skills of tenants.

We will revitalise the role played by our residents in enhancing neighbourhood management and planning, and community investment services, to contribute to the local environments in which residents live so they can benefit from improved local facilities and offerings.

Afford

able h

ousin

g

43

Sup

ported

livin

g


Ninety-nine audits were completed across Sanctuary Supported Living last year. We also revised our Service Improvement Action Plan tool to provide complete transparency of performance and responsiveness to actions for improvement. The new tool is now in operation across all supported living services.

We will implement a robust and challenging quality assurance framework on all registered and non-registered services, including the strengthening of the Service Improvement Action Plan process to identify ‘failure’ more effectively.

Our standard operating model went live in October 2016, bringing consistency of quality and working practices across our services. It was supported by a review of organisational structures and terms and conditions, resulting in sufficient efficiencies to balance reduced income resulting from annual rent reductions and the introduction of the National Living Wage. We also benefited from the reduced number of arrangements across the business and more equitable operational arrangements for local management teams.

We will implement a standard operating model across core services and products with a focus on the standardisation of services; driving consistency and scalability of operations, delivering further efficiencies; and ongoing review and improvement of this model.

Through the use of OneSanctuary, adopting consistent working practices and aligning our performance reporting framework, we have aligned our processes. This is supported by the use of bespoke solutions in relation to care and support planning and resource management, to provide comparable levels of visibility across care and support activities.

We will continue to align Sanctuary Supported Living’s processes to the Group processes to maximise efficiencies.

Supported living

Objective Results

Observatory groups are now embedded within the business, with subject matter experts and people with supported living experience working together to develop new products and business processes that respond to market demands and deliver consistent, quality services.

We will further develop internal expertise and an ‘observatory group’ of experts to embed best practice.


Throughout last year we focused on reducing agency spend. Our endeavours resulted in agency spend being virtually eliminated. Spend reduced by 19.92% to 1.77% of total salaries and wages against 8.77% of total salaries and wages in the previous year.

We will continue to reduce agency spend to efficiently deliver better quality care.

Last year we made strategic decisions to withdraw from non-viable contracts. This resulted in the avoidance of £191,945 of potential losses. We also received £1,114,583 of additional income as a result of negotiating improved rates on a number of local authority contracts.

We will improve contract management to maximise income and margin.

Last year we streamlined our management structure resulting in savings of £508,907.

We will ensure all costs are continually reviewed to identify savings and optimise the financial position.

Home care

Objective Results

Hom

e care

45

Main

tenan

ce


Last year we expanded our internal delivery across responsive repairs and gas servicing raising utilisation to 78% and 73% respectively. Internal delivery of the cyclical programme and responsive capital works was 49%.

We will expand our internal delivery to include responsive repairs and gas servicing and repairs across housing in England and Scotland; the set-up of teams to deliver minor works, cyclical programmes and responsive capital; and increasing internal delivery to Sanctuary Students.

Last year the maintenance functionality of OneSanctuary went live. Significant efficiencies are expected to be realised from this over coming years, and are incorporated within our objectives for next year.

We will improve internal efficiencies through investment in mobile technology, improved scheduling, and more focused training to ensure a skilled workforce, reducing the number of ‘no access’ visits and the simplification of processes.

Last year we introduced our materials management reporting. This gave us greater visibility of expenditure, particularly around non-core stock resulting in a reduction of 6% for the financial year ending 31 March 2017 alone. We have a standardised procurement process and we have examined our core stock holding with our key suppliers of construction materials to ensure cost-effectiveness across operations.

We will reduce our cost base by limiting the purchase of non-core stock, enhancing management information, rationalising stock used, exploring alternative solutions around repairing not replacing, and improving analysis of expenditure.

Maintenance

Objective Results


We launched our volunteering and dementia strategies during 2016/2017, both of which focus on innovative solutions to delivering quality care. We continued to focus on reducing cost inefficiencies within our homes as demonstrated by maintaining our running cost at £95 per bed space per week, although our carers are being paid more money.

We will look at more efficient ways of providing services that maintain quality and offer value for money for fee payers.

Last year we developed new pay structures enabling the National Living Wage to be met as well as maintaining differentials between roles and grades. This was supported by a revenue strategy which focused on changing the funding of residents and reducing reliance on local authority income. We delivered a financial margin percentage of 18.2% in 2016/2017, which was in line with expectation.

We will monitor new National Living Wage developments and work on financial projections to ensure the business can pay competitive rates, while maintaining financial margins.

During 2015 we piloted an electronic care planning solution proving the operational benefits of electronic care plans. Since then we have begun developing an in-house solution which began its pilot in July 2017.

We will reduce the time care staff spend on paperwork by piloting electronic care planning, releasing them to spend more time with residents.

Care

Objective Results

Working in partnership with our scanning bureau in Liverpool, we are now able to securely store documentation electronically, reducing the need for external storage and freeing up space within our care homes.

We will implement an Electronic Document Management system which will reduce storage costs, free up valuable space in our care homes and allow immediate virtual access to historical records within care homes.

Care

47

Stud

ent


We have invested in our online platform and website functionality to deliver improved online search, booking and self-service functionality for our customers. These enhancements have contributed to increased traffic to our website this year and promoted our visibility and brand as a commercial operator. In addition, this has reduced calls to our contact centres, generating staff cost efficiencies.

We will work to deliver operational efficiencies and improve customer experience through advancements in technology and quality.

Across the portfolio we operate a variety of accommodation at varying price points and, by investing in our assets, we were able to maintain our key performance indicators. We also protected our market position and formed new partnerships delivering an income of £375,000. Our assets are constantly reviewed to ensure that they generate a return in line with expectations. Last year an agreement on a student property was revised to add increased value to the Group and summer business has been particularly strong in the North.

We will optimise underutilised assets to generate value, focusing on opportunities to convert and renegotiate schemes and, where appropriate, increase summer business.

Savings on maintenance expenditure were achieved through utilising our internal maintenance service rather than external contractors. Further efficiencies were also achieved by negotiating a new security contract to ensure our properties remain safe and secure.

We will ensure student properties remain safe and secure, clean and well maintained, providing the best environment in which to live and study.

Student

Objective Results


Our in-house construction team manages external contractor-led schemes, ensuring all schemes are competitively tendered, working closely with our procurement team to establish internal frameworks which will be applied across all schemes. This is in addition to developing our own properties to deliver our ambitious development programme of over 30,000 units by 2027.

We will further utilise our in-house construction function for the building of current and future development programmes.

Our in-house construction venture provides job and training opportunities through direct and indirect recruitment, new entrant training and up-skilling of the direct and indirect workforce. It also provides progression opportunities for current employees.

We will, as part of our in-house construction venture, provide apprenticeships and training to secure the much needed skills and labour to build the ambitious number of homes in our development programme.

Constructing and maintaining environmental, sustainable developments is a key requirement for the Group. All of our schemes meet the Code for Sustainable Homes Level 3 environmental rating as a minimum standard.

We will aim to meet the Code for Sustainable Homes Level 3 environmental rating if economically viable for all our new schemes, with Level 4 achieved on a number of developments.

Development

Objective Results

Dev

elopm

ent

49

Corp

orate services


SAP has been rolled out incrementally since 2015 and is now being used for finance, procurement, human resources, customer interaction, housing, maintenance and asset management.

Last year we launched our single contact number and increased the amount of services available in the Group’s Self Service Portal, to provide a single point of entry for information systems, human resources and finance support and services.

We will begin the optimisation of the Group shared service centre in order to provide a one-stop solution for operational teams and drive greater efficiency in the business.

We have supported the integration of our Scottish housing subsidiaries leading to back office and operational efficiencies.

We will finalise the transfer of engagements of our Scottish housing providers.

The financing structure of our student operation continues to be examined and refinancing opportunities pursued where they will generate improved returns.

We will continue to refinance the student accommodation properties in order to save interest costs.

Corporate services

Objective Results

Our ability to access timely and accurate performance data has been greatly enhanced by the implementation of the SAP system, reducing staff time spent producing data and enabling faster and more responsive decision making.

We will increase the automation of financial reporting in order to reduce the time spent creating reports for use by the business and senior management.

The implementation of an enterprise-wide SAP system has enabled several other software programmes to be made redundant, generating significant savings on licensing costs.

We will ensure that all hardware and software licence requirements are assessed and contracts are adjusted appropriately.

We will look to increase the efficiencies made by the implementation of OneSanctuary by ensuring processes are optimised for SAP.


Efficiencies in operational processes and staffing are achieved through enhanced procurement of materials and contractors to ensure we provide even greater value for money and service added value.

We will keep working and negotiating with suppliers in order to achieve further procurement savings.

A new Revolving Credit Facility for £75 million was put in place last year and certain other facilities have been renegotiated to reduce interest costs and increase flexibility for the Group. Other facilities are currently in negotiation to finance the proposed development programme.

We will negotiate new shorter-term Revolving Credit Facilities, which offer the flexibility required to meet the cash flow requirements for further development programmes.

Corp

orate services

51OUR OBJECTIVES FOR 2017/2018

Affordable housing and supported living

We will realise the efficiencies and operational integration of OneSanctuary and effectively manage the optimisation plan, ensuring enhancements offer tangible value to the operation.

We will develop greater engagement of residents to influence service delivery through insight, co-production and scrutiny.

We will complete the integration of a seamless customer service centre utilising state-of-the-art technology.

We will prepare for the impact of the Government’s exit from the European Union that could affect recruitment, the cost of goods and services, and the allocation of housing.

We will realise the operational and commercial benefits following the consolidation of operations in Scotland, developing the new governance arrangements and integrating further with Group operations.

We will successfully deliver to time, cost and quality, a rolling programme of reinvestment across the Group’s affordable housing stock to ensure compliance with the Decent Homes Standard, Scottish Housing Quality Standard and Energy Efficiency Standard for Social Housing in order for stock to remain fit for purpose.

We will plan to mitigate the effects of planned Government changes to Local Housing Allowances (LHA), Housing Benefit and Universal Credit to ensure the Group protects its income base and align the Group’s community investment activity to support that.

We will nurture the neighbourhood planning and relationship management process in key constituencies to ensure that the Group’s relationships are profitable and constructive.

We will continue to invest in effective staff engagement through the development of Staff Council and facilitating the implementation of Employee Volunteering, Staff Ideas and Staff Awards schemes.


Effectiveness Efficiency Economy


Maintenance

We will decrease reliance on external contractors by driving up internal utilisation across repairs, gas, and reinvestment and cyclical works to deliver a high quality, sustainable service with the ability to grow.

We will ensure operating models are geared efficiently to support the expansion of the Group through its development programme and the acquisition of other landlords.

We will successfully deliver the recommendations of the maintenance review programme and implement new terms and conditions for staff by realising savings and other associated benefits to achieve a ‘smarter maintenance’ service, ensuring greater customer benefits and efficiencies.

We will work with the information systems team to ensure the timely delivery of complementary software to support improvements to operations’ efficiency and service. This will include customer self-service, integrated materials management and electronic support planning.



Home care

We will streamline our management structure to minimise overheads.

We will review all contracts to ensure financial viability by negotiating improved rates or handing over non-viable contracts to new providers.

We will obtain good CQC ratings for all services for the CQC criteria of safety, effectiveness, caring, responsiveness and leadership.

We will increase the number of private hours provided at Sanctuary-owned extra care schemes.


Care

We will enhance our brand awareness, ensuring we will continue to develop relationships with key partners and explore new opportunities through the business development programme.

We will empower teams to deliver high quality services by continuing to invest in learning and development opportunities, continuing to embed the recruitment strategy to reduce the use of agency staff, and improve retention through introducing Value Based Recruitment and utilising in-house bank staff.

We will continue to maintain and improve the quality of our care, using the CQC assessments to measure our performance in this area.

We will deliver robust financial performance, achieving financial targets and delivering value for money. We will also focus on growing average fee rates and increasing the number of self-funding residents.



Student

We will work to deliver operational efficiencies and improve customer experience through advancements in technology, leveraging OneSanctuary output to improve business information and control.

We will optimise underutilised assets to generate value, focusing on opportunities to convert schemes and increase summer business.

We will ensure efficiencies in operational processes and staffing through enhanced procurement, learning and development, and equipment and asset investment.

We will ensure that the operation is realising appropriate income and margin and that the Group is utilising assets in the most cost-effective manner.

We will renegotiate our existing agreements with universities to improve returns.


We will continue to identify opportunities for affordable home ownership products while increasing returns to the Group.

We will continue to deliver more affordable home ownership products while increasing returns to the Group.

Development

We will continue our sales programme within England, focusing on our existing flagship scheme in Cheltenham delivering private extra care, and a large shared ownership scheme in London, as part of the 2015–2018 Affordable Homes Programme.

We will further utilise our in-house construction function for the building of current and future development programmes.


57

Corporate services

We will deliver efficient reporting and insight, maximising the investment in technology.

We will develop a central recruitment team and processes that reduce the time to hire for managers.

We will develop in-house recruitment services to attract staff with the appropriate skills, knowledge, values and competencies, and to reduce the cost of both temporary and permanent agency staff.

We will develop consistent reward and recognition frameworks that respond to current market conditions, while ensuring the continued engagement and motivation of staff.

We will deliver an efficient transactional service, maximising the investment in technology and first contact resolution.

We will deliver a flexible service, ensuring teams are responsive to customer and operational demand.

We will support future talent by facilitating Graduate and Apprenticeship Programmes, maximising opportunities to support individual career pathways.

We will maintain the Group’s Investors in People accreditations, while moving to the Generation 6 standard.



Want to find out more?

If you would like more information about

anything you have read in this report, you can

contact us in the following ways:

Email: [email protected]

Write to us:

PR and Communications team

Sanctuary Group

Chamber Court

Castle Street

Worcester

WR1 3ZQ

Tel: 01905 334344

www.sanctuary-group.co.uk

Contact details



Sanctuary GroupSanctuary HouseChamber CourtCastle StreetWorcesterWR1 3ZQ

Tel: 01905 334000Fax: 01905 334958www.sanctuary-group.co.uk

Sanctuary Group is a trading name of Sanctuary Housing Association, an exempt charity

Registered office: Chamber Court, Castle Street, Worcester WR1 3ZQ

Registered as a provider of social housing with the Homes and Communities Agency No. L0247

Registered Society No. 19059R

Published: August 2017

sanctuary-group +sanctuarygroup

If you would like this publication in an alternative format or language,please telephone 01905 334344or email [email protected]



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